Oracle’s ‘Lofty Price’ Sending Acme Packet Competitors Climbing

Several analysts have called the 22% premium for Acme Packet high given Acme’s slipping market share, but noted that’s likely to help others in the area that may suddenly look like targets.

Network traffic has soared as communications move increasingly mobile. Oracle’s purchase is a bet on the technology that helps manage communications based on the internet.

BMO, which said it was “surprised” by the price, said Acme Packet’s primarily been losing market share to Sonus. Shares of Sonus leapt 15% to $2.63 in recent action, the best performer of the group’s rally.

Needham analysts said the decision by Orace is likely to up the ante with competitors EMC, Cisco, IBM, Hewlett-Packard and Dell, adding “it will put a bit more premium in the category.”

Among the names Needham mentioned as deserving of a market boost, BroadSoft Inc. is up 7.6% to $37.66, while Procera Networks is up 5.6% to $17.88 and Allot Communications is up 4.8% to $14.51.

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